Solution-Compute the cash balance at the end of the first

Compute the cash balance at the end of the first year

Reference no: EM132636496

Problem - Alpaca Corporation had revenues of $265,000 in its first year of operations. The company has not collected on $19,200 of its sales and still owes $27,300 on 9 $97,500 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,000 in salaries. Owners invested $15,500 in the business and $15,500 was borrowed on a five-year note. The company paid $4,100 in interest that was the amount owed for the year, and paid $8,100 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. (Assume taxes are paid in the same year).

Required - Compute the cash balance at the end of the first year for Alpaca Corporation.

Reference no: EM132636496

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Compute the cash balance at the end of the first year

Reference no: EM132636496

Reference no: EM132636496

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